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Getting Into Buy-to-Let Real Estate

When it comes to wise financial
investments, real estate is one of the most positive bets out there. If you are
employed, you are probably aware that your position is never guaranteed and if
you are self-employed, you are probably familiar with fluctuations in your
income. It’s always a good idea to have a sound financial income coming in
alongside your regular salary or takings. Real estate can provide you with
this! There are two options when it comes to real estate. The first is
purchasing a property to sell it on to another buyer at a higher price. The
second, which we will focus on, for now, is to purchase a property and then let
it out to a tenant. Here’s everything you need to know when getting started!

Buy-to-Let
Basics

Buy-to-let real estate secures
you a monthly income. If you have used a mortgage to purchase the property, you
should charge the tenants slightly more than the mortgage rate. This means that
they are essentially paying off the mortgage for you and you have a little extra to
add to your own pocket on the side. If you bought the property outright, or you
have been letting the property for a while, and the mortgage has been cleared,
you can keep the entire monthly payments as extra income. Perfect!

Refurbishing

When you first purchase the
property with the intent to let it, you need to decide whether you will carry
out any refurbishments before putting it out on the market. The best way to determine
this is to take a look at similar properties on the market. Look at other
houses in the local area. If your property is falling below standard, it’s time
to vamp it up a bit. Alternatively, you could justify charging slightly more
than the average rate for the area if you install extra facilities or carry out
significant improvements.

Maintenance

Becoming a landlord is a
responsibility. You need to ensure that the property is up to standard and in
its best condition at all times once tenants move in. So, be prepared and plan
your property management beforehand. Using property management services will ensure that everything is always
running smoothly, increasing your tenants’ quality of living and helping to
guarantee rental returns, as tenants will want to stay put rather than leaving.

Finding the
Right Tenants

It’s a good idea to always meet your
tenants
before allowing them to move in. You want your property to be inhabited by
trustworthy people who will treat it correctly. Bad tenants can cause all sorts
of damage. So choose people who you think you can maintain a good professional
relationship with. Ensure that they are provided with your contact details
should they need to talk to you at any time regarding the property or problems
that may arise.

While this is a concise and concentrated
guide, it is comprehensive and hopefully aids you in your journey to delving
into the buy-to-let real estate market. This is a great investment just waiting
to happen!

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